Restaurant :- Restaurant sector taxpayers may also opt for the scheme. Tax rate is 5%

Service providers :- Service providers are not eligible

Detailed records

dealer registered under composition scheme is not required to maintain detailed records

input tax credit

Composition Dealer is not allowed to avail input tax credit of GST paid to their supplier.

Bill of Supply

Bill of Supply :- A composition dealer cannot issue tax invoice, instead they can issue a bill of supply. This is because a composition dealer cannot charge tax from their customers.

GST payment

GST payment :- GST Payment has to be made out of pocket. The consumer/ the receiver of supplies will not be liable to pay GST to the supplier .

Return on a quarterly basis

The taxable person is required to furnish only one return i.e. GSTR-4 on a quarterly basis and an annual return in FORM GSTR-9A.

GST Tax from buyer

Composition Dealer is not allowed to collect composition tax from the buyer.

composition taxable person

The taxpayer has to mention the words ‘composition taxable person’ on every notice or signboard displayed prominently at their place of business

The taxpayer has to mention the words ‘composition taxable person’ on every bill of supply issued by him.

Intra-state supplies

Composition Scheme is available only for intra-state supplies.The taxpayer can only make intra-state supply (sell in the same state) i.e. no inter-state supply of goods.

taxpayer has to file Form GST CMP-01 or GST CMP-02 with the government. This intimation should be given at the beginning of every Financial Year by a dealer wanting to opt for Composition Scheme.

The taxpayer must mention the words ‘composition taxable person, not eligible to collect tax on supplies’ at the top of the bill of supply issued by him.

The taxpayer has to mention the words ‘composition taxable person’ on every notice or signboard displayed at a prominent place at his principal place of business and at every additional place or places of business.